LATAM Airlines Group, the largest airline carrier in Latin America, has filed for bankruptcy due to the sharp decrease in air travel sparked by COVID-19. However, according to the website, reservations, employee pay, and flight vouchers will not be affected.
How, you ask? It’s a Chapter 11 bankruptcy, so it’s not terminal.
“The U.S. Chapter 11 financial reorganization process provides a clear and guided opportunity to work with our creditors and other stakeholders to reduce our debt, address commercial challenges that we, like others in our industry, are facing as a group,” the company said. “It is very different from the concept of bankruptcy in other countries and is not a liquidation proceeding.”
LATAM is not flyin’ solo. They’re the second airline from Latin America to file for bankruptcy in May. The first, Colombia-based Avianca, filed for bankruptcy after facing coronavirus-related financial problems.
The CEO of LATAM Airlines Group, Roberto Alvo said they “are looking ahead to a post-COVID future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of our passengers and employees being paramount.” Alvo hopes that in the future, the airline will take off.